I have never known an entrepreneur whose goal it was to end up with less than they invested over the course of their company’s lifetime, and I’ve worked with many over the years. So I’m willing to bet that, like so many others, your ultimate goal is to maximize your business’s value in the hopes of going on to enjoy the retirement of your dreams. The first step in maximizing your business value is to understand its true value – not guess at it.
Identifying Business Value
Countless business owners have learned this lesson the hard way. According to several surveys on the subject, and my personal experience, many business owners:
- Make retirement assumptions based on faulty data.va
- Sell their businesses at the wrong price or at the wrong time.
- Don’t pay attention to the timing of gifts and how they impact their succession planning.
- Pay more in taxes than is necessary.
- Don’t understand the key valuation drivers.
- Fail to make specific plans to grow the value of their business.
Wouldn’t you be motivated to make some changes if you knew that altering your cash flow and risk levels associated with your business could substantially increase in its overall value? A business valuation is the best place to start.
Arm yourself with the information you need to increase your short- and long-term cash flow, lower the risks associated with your business and increase your annual growth rate.
This article was published in the June 2015 issue of Columbus Business First – Ask The Expert.